Section 486 | Election altering period of account deemed under section 485

(1)This section applies where, disregarding this section, IAS financial statements of a worldwide group would be treated under section 485(4)(a) or (b) as drawn up for a period (“the default period of account”) during an accounts-free period.

(2)The ultimate parent of the group may make an election under this section in relation to the default period of account.

(3)Where an election under this section is made, section 485 has effect as if subsection (4)(a) or (b) of that section—

(a)did not treat IAS financial statements of the group as having been drawn up for the default period of account;

(b)instead, treated IAS financial statements of the group as having been drawn up for the period—

(i)beginning with the day on which the default period of account begins (“the start day”), and

(ii)ending with such day after the start day as is specified in the election (“the end day”).

(4)The end day must—

(a)fall within the accounts-free period, and

(b)not be later than the final day of the period of 18 months beginning with the start day.

(5)An election under this section—

(a)must be made before the end day, and

(b)is irrevocable.

(6)The fact that the ultimate parent of a worldwide group makes an election under this section in relation to a default period of account (“the earlier elected period”) does not prevent it from making an election in relation to a later default period of account (“the later elected period”).

(7)But where it does so, the end day in relation to the later elected period must be 3 years or more after the end day in relation to the earlier elected period.

(8)Where this section modifies section 485(4)(a) or (b) so that it treats IAS financial statements of the group as having been drawn up for the period mentioned in subsection (3)(b) of this section (“the elected period”), section 485(4)(b) and (c) apply in relation to any part of the accounts-free period following the end of the elected period.

(9)In this section “accounts-free period” has the same meaning as in section 485.